SACP WELCOMES THE APPOINTMENT OF Ms GILL MARCUS AS GOVERNOR

The SACP welcomes the announcement made today by the president of the Republic of the appointment of Ms Gill Marcus as Governor Designate of the Reserve Bank and to assume the responsibility as Governor in November.

We wish to congratulate her on her appointment.

The SACP further wishes to take this opportunity to thank Mr Tito Mboweni for the sterling manner in which he had executed government policy, a policy stance that we as the SACP are well known critics off. Mr Mboweni carried out his task diligently albeit stirring up the working class organizations occasionally in the wrong way. We wish him luck in his future endeavors.

The SACP hopes this appointment will bring about a breath of fresh air and will allow us to take forward the policy debate on the mandate and the role of the reserve bank going forward in helping us navigate the current problems imposed on us by the global capitalist crisis.

Consistent with the Alliance Summit resolution stating that "The alliance therefore calls for urgent national reflection on the appropriateness of inflation targeting as well as the ranges chosen as policy for South Africa given its developmental challenges", we hope that both government and the governor designate will lead the appropriate review on this aspects of our economic policy.

Over the years our monetary policy has retained its conservative character and a one-sided focus on inflation with negative consequences for growth and jobs. The SACP is concerned about interest rates being used as a blunt instrument to control inflation and their impact on the value of the currency, investment, employment and growth. In this regard, we need to explore other mechanisms to control price increases, fight poverty, promote creation of decent work and reopen debates on the inflation-targeting framework.

Statement issued by the SACP, July 19 2009

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